Chu, C. Y. Cyrus; Yeh, Jason J. H. - In: International Journal of Business and Economics 4 (2005) 2, pp. 123-139
This paper proposes an insurance scheme to protect a currency from self-fulfilling financial crises. Treating such crises as catastrophes, the recently developed catastrophe insurance bond (CAT bond) can be adapted and applied. The idea is for the insured currency area to issue bonds with an...